Nigerian Central Bank Governor Says Fintech and Cryptos Are Changing How Financial Systems Work


Nigerian Central Bank Governor and bitcoin critic Godwin Emefiele recently remarked that the rise of fintech and cryptocurrencies, among other technologies, has forced banks and financial institutions to change the way they operate. . According to Emefiele, this requires the central bank’s Monetary Policy Committee (MPC) to rethink how it regulates the financial system.

Rethinking the regulation of the financial system

Central Bank of Nigeria (CBN) Governor Godwin Emefiele has reportedly said the MPC, which was due to meet on July 18-19, must chart a new course that changes the direction of Nigeria’s monetary policy.

Speaking at a so-called MPC retreat, Emefiele said new technologies and innovations were playing an important role in Nigeria’s development. Therefore, future MPC decisions should seek to strengthen the contributions of these technologies.

Moreover, in his remarks published by Daily Nigerian, Emefiele – a bitcoin critic – argued that fintechs and cryptos have changed the way the financial system works and this calls for rethinking. He said:

Developments in fintech, cryptocurrencies, digital payments, artificial intelligence, and machine learning have changed the way the financial and banking industries operate, both globally and domestically. Hence the urgent call to rethink the regulation, supervision and implementation of monetary policy in the financial system.

Although new technologies and innovations are often associated with risks and uncertainties, Emefiele insisted that they also come with several benefits, including better access to financial services, poverty reduction and job creation.

Staying relevant in a changing world

Meanwhile, the Daily Nigerian report also quotes the CBN Governor urging MPC members to familiarize themselves with monetary policy tools and objectives that are relevant for a digitalized world.

“To ensure the relevance of monetary policy and the role of monetary authorities in the new digital world, MPC members must engage with [an] advanced level understanding of how digitalization interacts with monetary policy goals, targets and tools,” Emefiele reportedly said.

Regarding the MPC’s retirement, Emefiele said it was an important event as it gives the central bank an opportunity to assess its performance over the past three to four years.

Register your email here to receive a weekly African news update delivered to your inbox:

Keywords in this story

ai, Central Bank, Central Bank of Nigeria, Cryptocurrency, digital world, financial system, Fintech, Godwin Emefiele, innovations, Monetary Policy, Regulation

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively on the economic issues of some African countries as well as how digital currencies can provide an escape route for Africans.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


About Author

Comments are closed.